Business owners know that they need to be insured against certain things, such as medical malpractice or product liability. An option that some business owners may not know about is captive insurance. It is an insurance company that is owned and operated by the insured. It has certain benefits that are not always available through traditional insurance companies.
1. Customization
One of the attractive features of captive insurance includes the ability to customize insurance coverage to fit the needs of the company. Trying to find an existing policy that has all the desired coverage options without having anything unnecessary added can be very difficult. Speak to someone who is experienced in captive consulting to figure out a personalized plan.
2. Extra Coverage
Sometimes a business might need extra protection from things that are not usually insured. Terrorism insurance and credit risk protection are not generally available in the commercial marketplace but can be added to a captive program. These may not be financially feasible offerings for a regular insurance company to offer, but if they are something that a company must be insured against then captive insurance may be the way to go. Extra coverage can be a great way of managing risks associated with a specific industry.
3. Reduced Costs
The costs associated with a traditional insurance plan will not all apply to a captive. Since it is owned by the insured, the administrative costs and fees that would be paid out to an outside insurance company are lessened or eliminated. Since the plan can be customized, costs can also be saved because unneeded things are not being paid for.
As with most business decisions, insurance options need to be considered carefully. It is important to do enough research that a choice can be made confidently. Do not be hasty when assessing the options and get something that is the right fit for the company.
Isla